The US Department of Justice has launched a criminal investigation into Federal Reserve Chair Jerome Powell, marking the latest escalation in a campaign by President Donald Trump to undermine the central bank's independence.
Powell's extraordinary response on Sunday, where he denounced the investigation as an attempt by the White House to punish him for not setting interest rates according to the president's wishes, has sparked widespread concern. The investigation is reportedly centered on potential "abuse of taxpayer dollars" related to renovations of the Fed's Washington D.C. headquarters.
Critics have warned that this move could put the US economy at risk by undermining the independence of the central bank and destabilizing financial markets worldwide. Economists fear a prolonged period of inflation reminiscent of the 1970s if interest rates are manipulated through politics, rather than data-driven decisions.
Powell's defense of the Fed's autonomy has garnered support from former Fed chairs and Republican senators, who are warning Trump against his aggressive campaign to lower interest rates. The statement signed by every living former Fed chair condemned the investigation, emphasizing that attacks on independent central banks can lead to unstable economies and higher costs of living.
The Fed's independence is considered crucial to maintaining economic stability, with its leaders making decisions based on data-driven evidence rather than political pressure or intimidation. The White House's attempts to influence monetary policy raise significant concerns about the integrity of US economic governance.
In a broader context, Trump's campaign to undermine the Fed has been ongoing since he entered office in 2017. His repeated attacks have led to speculation that he may attempt to fire Powell, although this move was ultimately met with court intervention.
Powell's extraordinary response on Sunday, where he denounced the investigation as an attempt by the White House to punish him for not setting interest rates according to the president's wishes, has sparked widespread concern. The investigation is reportedly centered on potential "abuse of taxpayer dollars" related to renovations of the Fed's Washington D.C. headquarters.
Critics have warned that this move could put the US economy at risk by undermining the independence of the central bank and destabilizing financial markets worldwide. Economists fear a prolonged period of inflation reminiscent of the 1970s if interest rates are manipulated through politics, rather than data-driven decisions.
Powell's defense of the Fed's autonomy has garnered support from former Fed chairs and Republican senators, who are warning Trump against his aggressive campaign to lower interest rates. The statement signed by every living former Fed chair condemned the investigation, emphasizing that attacks on independent central banks can lead to unstable economies and higher costs of living.
The Fed's independence is considered crucial to maintaining economic stability, with its leaders making decisions based on data-driven evidence rather than political pressure or intimidation. The White House's attempts to influence monetary policy raise significant concerns about the integrity of US economic governance.
In a broader context, Trump's campaign to undermine the Fed has been ongoing since he entered office in 2017. His repeated attacks have led to speculation that he may attempt to fire Powell, although this move was ultimately met with court intervention.
and it's not just about the economy, it's about who gets to make decisions around here... fed independence is a big deal, and if you undermine that, you're playing with fire 
... economists are right, if interest rates get manipulated, we could see inflation way up... like, remember the 70s? 
that was a mess... powell's right, the fed needs to be independent, making decisions based on data, not politics... and if trump keeps this up, he'll just make himself look bad in front of the world 
This is getting out of hand... Trump thinks he can just bully his way into changing interest rates? 
The Fed's independence is what keeps the economy stable, not some politician's ego 
When the central bank's independence is compromised, it's like the safety net for our economy is being pulled away. We need the Fed to make decisions based on facts, not emotions or personal opinions.
The idea of a President trying to directly control the Federal Reserve is like, super scary 
We need Powell and the rest of the Fed to make decisions based on data, not politics. Otherwise, we're doomed.
gotta respect his courage to speak truth to power 
and those former Fed chairs coming out strong against Trump is a major win for economic sanity 
I mean, who needs politicians in charge of monetary policy anyway? 
the less interference from the White House, the better 
Powell's defense of the Fed's independence is a clear reminder that some things should remain sacred 
and let's hope this investigation doesn't escalate into something bigger 
i cant even believe what's happening with powell and the fed 
and now there's a criminal investigation into him 
but seriously this could have major consequences for the economy and inflation is already getting crazy 
and now economists are warning us about the same thing 
so fingers crossed that powell and the fed can stay independent and make decisions based on facts 
!
I'm really worried about what's going on with Jerome Powell and the Federal Reserve. This investigation feels like a huge step back for our country's economic stability 
. I mean, can you imagine if they were to manipulate interest rates just because Trump wanted them to? It would be a recipe for disaster 
. Our economy is already so fragile right now, we don't need some kind of chaos triggered by politics 
Trump thinks he can just bully his way into gettin interest rates down to make the economy look good before the election? Please, dude, that's not how it works 
The Fed's got a reputation for makin decisions based on facts, not some made-up BS that makes the president happy 
They know what's at stake here. If the White House tries to interfere with monetary policy, it's like messin with a time bomb 
The economy would be the first to get blown up 
and trump is behind it all apparently he thinks he can just bully the fed into doing what he wants and now ppl are worried about the economy getting all messed up 
anyway i think this is super sus why would anyone want to undermine the independence of the central bank? isnt that like, super important for our economy?!?! 
, can't believe what's happening with the Federal Reserve 
. The White House trying to undermine the Fed's independence? It's like they want to play with fire 
. We need data-driven decisions, not politics as usual 
.
. But honestly, I'm just trying to stay chill and hope this all gets sorted out soon 
.
. If Trump keeps messing with that... no thanks 
. And what's next, trying to fire Powell in court? Like, come on! That was a bold move last time and you're just doubling down now 
.